Live Meeting MSI (LMSETUP.msi / LMSETUP.exe) Install fails with "Turn Off Application Compatibility Engine" is set to Enabled on Windows 7 32bit

The Live Meeting Console installation will fail when the Local Security Policy and/or Group Policy Key, “Turn Off Application Compatibility Engine” is set to Enabled. When installing drivers in the 32bit version for Live Meeting Console (which is not the case in the 64bit version, and thus no MODI drivers on 64bit) we use the “Windows Shim Infrastructure”. If you disable the shim engine with the group policy you disable this functionality.

If you disable the group policy you can see that the driver installer framework was able to continue as designed:

MSI (s) (FC:00) [15:02:44:872]: Doing action: MsiProcessDrivers

Action 15:02:44: MsiProcessDrivers.

Action start 15:02:44: MsiProcessDrivers.

MSI (s) (FC:00) [15:02:44:872]: Note: 1: 2235 2:  3: ExtendedType 4: SELECT `Action`,`Type`,`Source`,`Target`, NULL, `ExtendedType` FROM `CustomAction` WHERE `Action` = 'MsiProcessDrivers'

MSI (s) (FC:60) [15:02:44:919]: Invoking remote custom action. DLL: C:\Windows\Installer\MSI61DD.tmp, Entrypoint: ProcessDriverPackages

DIFXAPP: 'Component' is 'COMP_RTYuv.dll'

DIFXAPP: Component state 0x2 -> 0xFFFFFFFF

DIFXAPP: 'ComponentId' is {8CEA3E98-7894-4EFC-A6CA-978A783819E8}

DIFXAPP: 'Flags' is 2

DIFXAPP: component path is

MSI (s) (FC!78) [15:02:45:044]: PROPERTY CHANGE: Adding NoOp_{8CEA3E98-7894-4EFC-A6CA-978A783819E8} property. Its value is 'TRUE'.

DIFXAPP: INFO - This is a no-op custom action for component COMP_RTYuv.dll. The NoOp_{8CEA3E98-7894-4EFC-A6CA-978A783819E8} property has been set to TRUE.

Action ended 15:02:45: MsiProcessDrivers. Return value 1.

The Application Compatibility Engine needs to be turned on to install this application on 32bit Windows 7.